Legislative Session number- 88

Bill Name: SF0489

3E Relating to retirement

ARTICLE 1 - STATE BOARD OF INVESTMENT
PROVISIONS

Authorizing state board of investment swap contracts

ARTICLE 2
- MSRS ADMINISTRATIVE PROVISIONS

Modifying certain legislative commission on
pensions and retirement standards for pension valuations and cost estimates and
contents of a public pension fund financial required report; merging the elected
state officers retirement plan into the legislators retirement plan; modifying
medical adviser designation; revising the contribution rate for the general
state employees retirement plan, the correctional state employees retirement
plan, and the state patrol retirement plan; modifying provisions relating to
permanent disability benefits including medical or psychological examinations,
independent medical examination or vocational rehabilitation counseling, regular
medical or psychological examinations, and refusal of examination; requiring
certain disabilitant earning reports; clarifying certain language; removing
certain obsolete language and revising certain outdated requirements; modifying
contents of a public pension fund financial required report, legislators
retirement plan actuarial valuation; modifying certain actuary retention
provisions; modifying provisions relating to combined service annuities,
exemption from the process and postretirement adjustments; specifying
application; repealing certain provisions relating to legislators retirement
plan retirement allowance, retirement plan application; contribution rate
revision, reporting commission review, elective state officers retirement plan
application, administration and benefit adjustments

ARTICLE 3 - PERA
ADMINISTRATIVE PROVISIONS

Clarifying coverage of student employees and
extending duration of excluded work-study positions under the public employees
retirement association (PERA); revising military service credit purchase
provision for consistency with federal code; clarifying average salary for
benefit purposes; clarifying Minneapolis employees retirement fund (MERF)
division benefit eligibility; providing privatized public hospital employees
retirement coverage to employees of the Lake County Sunrise Home; making
administrative changes; modifying certain privatized public hospital and pension
benefits plan provisions under PERA; defining privatized former public employer
and employee; removing legislative approval requirements and modifying certain
legislative notification requirements; clarifying privatized public hospital
pension benefits eligibility; specifying application of reemployed annuitant
earnings limitations; making administrative changes; repealing the definitions
of medical facility and other employing unit and the application date
requirement and the social security leveling option under PERA

ARTICLE 4 -
BENEFIT ACCRUAL RATE SPECIFICATION

Modifying the retirement annuity formula
for state, public employees retirement association (PERA), and fire marshal
division employees, state troopers, teachers, and St. Paul and Duluth teachers;
modifying correctional employees monthly annuity calculation; modifying the
state and local corrections and PERA employee and state trooper disability
benefit computations; making technical changes; specifying future benefit
accrual rate increases application; repealing retirement benefit formula
percentages

ARTICLE 5 - REVISIONS AND REPEALS OF FORMER LOCAL POLICE AND PAID
FIREFIGHTER RELIEF ASSOCIATION LAWS

Making technical and conforming changes;
revising various statutes to reflect the recent mergers of local police and
salaried firefighter relief associations and consolidation accounts with the
public employees police and fire retirement plan; establishing the Bloomington
Fire Department Relief Association Guidelines Act and making conforming changes;
repealing mergers of police and fire relief associations into PERA police and
fire, consolidation of the Minneapolis firefighters and police relief
associations, the Fairmont police relief association and the Virginia fire
department relief association, local relief association consolidation, police
and salaried firefighters relief association, calculation of apportionment of
police state aid to counties, PERA police and fire fund membership exclusion,
police and firefighters supplementary amortization state aid, and the
Bloomington firefighters relief association minimum member
contribution

ARTICLE 6 - VOLUNTEER FIREFIGHTER RETIREMENT CHANGES

Defining
a relief association fiscal year; clarifying return to active firefighting after
break in service exceptions; modifying separation from active service exception
and deferred service pensions and requiring municipal approval; requiring
supplemental survivor benefit payment; repealing the state supplemental benefit
volunteer firefighters retroactive reimbursement in certain instances; extending
the allowed time period for municipal action or independent nonprofit
firefighting corporation approval or rejection of the length of time for action
on the election of transfer to statewide plan coverage; authorizing the White
Bear Lake volunteer fire department relief association to provide for the
payment of a lump sum death benefit from the special fund of the relief
association to the estate of a retired member

ARTICLE 7 - ONE PERSON AND
SMALL GROUP RETIREMENT CHANGES

Providing retirement coverage for employees of
the Minnesota association of professional employees (MAPE) under the Minnesota
state retirement system (MSRS); allowing public pension plan members receiving
retirement annuities or disability benefits and designated survivors to mutually
agree to terminate the survivor designation; placing the St. Paul teachers
retirement fund association in the covered state plans; clarifying the Minnesota
state retirement system (MSRS) rule of 90 eligibility for certain state
employees; authorizing certain employees of the city of Northfield to purchase
prior service credit under the public employees retirement association (PERA)
general employees retirement plan; authorizing purchase of PERA general
employees retirement plan allowable service credit for omitted member deductions
for public employment by the Wright county highway department

ARTICLE 8 -
MISCELLANEOUS PROVISIONS

Requiring the state auditor to provide volunteer
firefighter relief associations with certain investment information; requiring
board approval of public pension plan early retirement and optional annuity
factors and requiring board schedule implementation subject to legislative
commission on pensions and retirement review

ARTICLE 9 - STATE PATROL
RETIREMENT PLAN FINANCIAL SOLVENCY MEASURES

Defining average monthly salary;
modifying the state patrol retirement plan by increasing member and employer
contributions; increasing the new hire vesting minimum requirement; placing a
cap on allowable service for computing annuities; modifying the early retirement
penalty; modifying the surviving spouse benefit; modifying the annual
postretirement adjustments; repealing surviving spouse benefit
entitlements

ARTICLE 10 - PERA PLANS SALARY DEFINITION

Modifying the
salary definition for the public employees retirement association (PERA) for
retirement purposes by expanding the definition to include other forms of
compensation

ARTICLE 11 - PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT PLAN
FINANCIAL SOLVENCY MEASURES

Relating to the public employees retirement
association (PERA); modifying the trigger for increasing or lowering annual
postretirement adjustments for all plans; modifying duty disability definitions
and clarifying disability application requirements for the public employees
police and fire and local
government correctional retirement plans; revising
vesting, increasing plan employee and employer contributions, increasing the
reduction for early retirement; clarifying survivor benefit provisions; delaying
the first annual adjustment for public employees police and fire retirement
plan

ARTICLE 12 - TEACHERS RETIREMENT ASSOCIATION EARLY RETIREMENT REDUCTION
FACTORS

Modifying certain early retirement adjustment factors; phasing in
actuarial equivalent early retirement factors over a five-year period beginning
in 2015

ARTICLE 13 - FIRST CLASS CITY TEACHER RETIREMENT INCREASES AND
FINANCIAL SOLVENCY MEASURES

Appropriating money to the teachers retirement
association (TRA) on behalf of the former Minneapolis teachers retirement fund
association; modifying the retirement definition for St. Paul teachers
retirement fund association employees terminating employment; increasing the
Duluth teachers retirement fund association coordinated rate plan and employer
contributions and requiring the Duluth school district to make employer
contributions for reemployed annuitants; increasing the St. Paul teachers
coordinated and basic member contribution rates and requiring school district
employer contributions for reemployed annuitants; modifying an aid termination
date provision; authorizing the St. Paul teachers fund to recover annuity
amounts; adding a new postretirement adjustment; making corrections; revising
provisions relating to first class city teacher plan reemployed annuitant
holding account, St. Paul teachers fund retirement annuity computation, Duluth
teacher retirement fund retirement annuity computation, first class city teacher
plan actuarial reduction for early retirement, death while under age 55,
reemployed annuitant account application, and amortization aid termination;
authorizing the Duluth and St. Paul teachers retirement funds to revise bylaws;
requiring a consolidation study; providing additional money in direct state aid
to the Duluth teachers retirement fund and additional amounts in direct state
aid to the St. Paul teachers retirement fund; repealing a Duluth teachers
retirement fund postretirement provision providing no increase under certain
conditions

ARTICLE 14 - JUDGES RETIREMENT PLAN FINANCIAL SOLVENCY
MEASURES

Relating to the Minnesota state employers retirement (MSRS) plan for
judges; reducing postretirement adjustments; increasing the normal retirement
age; providing for tier I or tier II programs and exempting tier II judges from
the service credit limit; modifying and establishing member and employer
contributions; authoring existing judges to elect to be treated as a new judge
for benefit and contribution purposes; providing for tier II program election
for certain judges

ARTICLE 15 - MISCELLANEOUS PROVISIONS

Requiring
Minnesota state retirement system (MSRS) and public employees retirement
association (PERA) monthly public pension fund deductions for membership dues or
other labor organization payments upon annuitant written authorization;
authorizing certain labor organizations to conduct blind mailings to annuitants
of public retirement systems

ARTICLE 16 - APPROPRIATIONS

Appropriating
money to the department of public safety for increased employer
contributions
(rt)